Financial Services Ireland


Tax Alert: Common Reporting Standard (CRS) for Section 110s (May 2017)

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Irish ‘Financial Institutions’ will be required to submit Common Reporting Standard (CRS) information to Revenue by 30 June each year with the first returns due by 30 June 2017 for the year ended 31 December 2016.

It is likely Section 110 entities may come within scope of this filing requirement and as such we have set out the following considerations:

What to do now?

  1. Entities should first consider its classification in order to determine if it is required to complete a review of their accounts and ultimately report any accounts to Irish Revenue. Entities are either considered Financial Institutions (FI) or Non-Financial Entities (NFE)
  2. If the entity is considered an FI then it will be required to review if it has any Financial Accounts and if those accounts are held by an individual or entity which is in a reportable jurisdiction as set out in OECD guidelines (non-Irish or non-US under CRS) and whether the account holder is a Reportable Person, to determine if any accounts should be included on the annual report.
  3. Even if an FI determines it has no Reportable Accounts Irish Revenue still requires that the FI completes a nil return, indicating it has no reportable accounts.

How to file a report?

Report must be submitted electronically via Revenue Online System (‘ROS’). This is a 2 step process, first the entity or administrator must register for CRS filing ability on ROS, then it will be required to upload an XML report setting out the required details of CRS.

Is there a penalty?

Failure to file the report on time may result in Revenue applying similar penalties to that for FATCA filing:

  1. A return not being submitted or being incomplete or incorrect – €19,045 (Section 898O)
  2. If a return or resubmission is not submitted then a daily accruing penalty – €2,535 (Section 898O)
  3. Not complying with any requirements of the regulations – €1,265 (CRS – 891F(7)(b)(ii) & FATCA – 891E(8)(b)(ii))

It is worth noting that the report once made can be amended.

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Thought Leaders

Aidan Walsh

FSO Ireland Tax Lead

Amanda Murphy

FS Partner, Business Tax Advisory